Celadon Group Comments On the Lifting of the Moratorium At the Mexican Border and Provides Guidance.

Business Editors

INDIANAPOLIS--(BUSINESS WIRE)--Dec. 4, 2002

Celadon Group, Inc. (Nasdaq: CLDN), noted today that the action taken by President George W. Bush on November 27, 2002 to lift the moratorium that enables Mexican trucks to move cargo between Mexico and the U.S. should have a favorable impact on the Company's future earnings. Celadon is a leading long haul trucking company specializing in service from the United States and Canada to and from locations in Mexico.

Due to this recent development, Paul Will, Chief Financial Officer, stated, "The Company estimates 2003 calendar year diluted earnings per share between $1.10 to $1.20. This guidance assumes that the U.S. economy continues at its present pace, there are no major changes in diesel oil prices and the Company is successful in ramping up the number of trucks that will be involved in these movements to approximately 300 by the end of the first twelve months after certification is complete. The pace at which we can take advantage of this action will determine where earnings will be within that range. The Company has operated its Mexican affiliate since June 1995."

Stephen Russell, Chairman and Chief Executive Officer, stated, "We believe there will be benefits from this action taken by President Bush to lift the moratorium on Mexican trucks. We have anticipated this move and are positioned to execute our operational plan to utilize Mexican drivers for hauling freight between Mexico and U.S. We also believe we are uniquely qualified to benefit from the lifting of the moratorium based on our freight flows to and from Mexico."

Celadon Group, Inc. is a truckload carrier headquartered in Indianapolis, that operates in the U.S., Canada and Mexico, and, is the majority owner of TruckersB2B, Inc., which is a provider of cost benefits to about 13,000 member fleets. The company operates approximately 2,650 line haul tractors and 7,000 trailers. Please visit the company's websites at: www.celadontrucking.com and www.truckersb2b.com.

The discussion set forth above as well as oral statements made by officers of the company relating thereto, may contain forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such comments are based upon information currently available to management and management's perception thereof as of the date of this press release. Actual results of the Company's operations could materially differ from those forward looking statements. Such differences could be caused by a number of factors including, but not limited to, potential adverse affects of regulation; changes in competition and the effects of such changes; increased competition; change in fuel prices; changes in economic, political or regulatory environments; changes in the availability of a stable labor force; ability of the Company to hire drivers meeting Company standards; changes in management strategies; environmental or tax matters; and risks described from time to time in reports filed by the Company with the Securities and Exchange Commission. Readers should take these factors into account in evaluating any such forward looking statements.

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